Reggie Fils-Aimé will no longer serve on the GameStop following a disappointing earnings call and a dramatic saga involving the company's stock price. The news comes as the retailer plans to transform itself in a last-ditch effort to save itself from collapsing.
For the last few years, as gamers transition to mostly purchasing games digitally, GameStop has been struggling to hold on. With numerous store closures and big losses, the company has been struggling to adapt. Former Nintendo of America head Reggie Fils-Aimé was brought in to try and steer the ship, but it appears that GameStop will be moving in a different direction. GameStop is now looking to an ecommerce transformation via Chewy.com founder Ryan Cohen.
The earnings and Reggie Fils-Aimé's departure led to GameStop's stock dropping yesterday. GameStop's stock had risen in February after a week-long fight between retail investors and hedge funds in January. A second rally came following news that GameStop's CFO had departed and rumblings that Ryan Cohen would play a central role in the company going forward. This gave intense enthusiasm in the company once again, but the future is still uncertain.
It's likely the GameStop stock will die back down again for a time, but as more concrete plans and changes begin to roll out under Cohen and the new board's advisement, it's possible could return. Many retail investors are still paying close attention to GameStop as it could be on a steady redemption arc. Reggie Fils-Aimé may not have been the savior some had hoped he'd be, but it seems more likely Cohen could transform the gaming retailer into something truly monumental if everything pans out.
Source: GameStop, Nintendo Wire
